Impact Of Entrepreneurial Skills In Reducing Youth Unemployment In A Depressed Economy; A Case Study Of Abc Transport Company In Imo State (2019- Till Date)

ABSTRACT

This study examined Impact of Entrepreneurial Skills in Reducing Youth Unemployment in a Depressed Economy with reference to ABC Transport Company in Imo State. The broad objectives of this study is to examine the possible ways of eradicating unemployment through the introduction of entrepreneurial skills. The study focus on what Schumpeter’s theory referred to as the “concentric circles” which is a practical approach to resolving unemployment situation in an economy. The study is a descriptive survey design. Questionnaire items were distributed to 160 respondents to gather factual information about the topic. Their responses were tested using appropriate statistic tools like the simple percentage and the chi- square method. The study found that there are roles entrepreneurial skills and businesses play in youth employment in Nigeria through entrepreneurial development. Furthermore, it also shows that youths in Imo state can be given basic training on how best to establish and grow business enterprise in local communities within the state. The study therefore recommends that government should remove corruption and greed and formulate policies that will promote the success of entrepreneurship and free enterprise; government should assist entrepreneurs through regular marketing workshops and seminars in conjunction with the manufacturers association of Nigeria (MAN) and chambers of commerce and industries.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Before embracing the colonial government in Nigeria unemployment was a rare phenomenon because people were highly entrepreneurial and productivity engaged. In pre and post independent in Nigeria, the Igbo ethnic groups were recognized internationally for its culture of entrepreneurship and enterprise development (Dana, 1995). The Yoruba’s and Hausa were not left out too. Nigeria like most developing nations of the world is faced with myriad of problems and realities which include poverty, unemployment, conflicts and diseases. These situations pose great challenges to the very existence of individual in most developing nations thereby, calling for the training of educated youths, men and women who can function effectively in the society in which they live in.

However, successive administrations in Nigeria introduced formal education which enabled people to have the opportunity to being employed in the civil service after graduation. As such, the system destroyed and self-reliance, self-employment and entrepreneurial skills of Nigerians as they became permanently dependent on the colonial masters (Nick,2008; Raimi,2010) this led to massive unemployment and craze in the contemporary times for “all-ready-made jobs”. It is on the premise that this study seeks for the development of entrepreneurship in order to sustain and economy of high-level unemployment reduction. Nigeria is a blessed country with numerous business and investment potentials due to the abundant variant and dynamic human and natural resources it possesses. Nigerians have made remarkable achievements in diverse fields such as science, technology, academics, business and entertainment. Thus, entrepreneurship activities and innovative ingenuity in Nigeria have developed enterprises in the following areas; agriculture/ Agro-allied activities where there are food stuffs, restaurant, fast foods vending etc. in the area of solid minerals there are quarrying, perm stone cutting/ polishing and gushing engineering. In power and transport, there are power generations, haulages business (cargo and passengers), in the area of information and telecom business, there are manufacturing and repairs of GSM accessories, in hospitality and tourism business, there are hotels, accommodation, resorts centers, cinemas, film and home video production; in oil and gas business, there are construction and maintenance of pipelines, drilling, refining by-products, etc. In spite of the fact that has been regarded as the bedrock for employment generation and technological development in Nigeria, the sector nevertheless has had its own fair share of neglect with concomitant unpleasant impacts on the economy.

History very often has a direct impact on what the nation is facing in the present. Entrepreneurship in Nigeria today is not what it used to be. Majority of Nigerians used to be entrepreneurs. Before the colonization era, a lot of Nigerians were majorly involved in trading. In fact, the wealthiest at the time were traders. Even before money was generally accepted as the ledger tender, people exchanged what they had in surplus for what they don’t have. Entrepreneurship was a way of life for most people then. Nigeria always was full of people with a business mindset and Nigerians always had a nigh moral standard and value system for doing business.

During the colonial era, the mode of entrepreneurship changed. The colonial masters brought their goods and made Nigerians their middlemen. Then came formal education and the companies established by the colonial masters. A lot of young Nigerians were employed by these companies. As many Nigerians began to accept formal education, most people were being trained to join the labour force and not to be entrepreneurs. The entrepreneurial mindset began to fade away.

Against this backdrop, entrepreneurship when and it gallantly developed in Nigeria will take his pride of place in reducing unemployment and thus generating employment among Nigerian youths especially the graduates and the place the economy on a proper footing. It is in this respect that this paper seeks to investigate the connections between entrepreneurship, unemployment and employment generation in Imo state.

1.2 Statement of the Problem.

There exist diverse economic, social and political problems at different magnitudes facing nations of the world and the third world countries are not excluded. These diverse economic, social and political problems have adversely affected the sustainable development of the countries, including the high unemployment rate they are currently facing (Williams and Michael, 2012). Unemployment has become a global phenomenon of the 21st century; the problem is becoming more complex each passing year in Nigeria. Unemployment, under-employment and rural-urban migration have enveloped the Nigerian labour market. This has been compounded by frightening number of graduates from polytechnic’s, colleges of education, mono-technics and universities that leave school each year. This has increased the rate of social vices like robbery, kidnapping, prostitution, human trafficking, child abuse and unfair labour practices experienced in Nigeria by the unemployed youths.

National manpower board (2009) opined that Nigerian labour market could barely absorb 10% of the over 3.8 million persons turned out by the Nigeria educational system annually. The problem of this study revolved around the high rate of unemployment and low productivity among the citizens of Nigeria. The present situation seems to give an impression of economic insecurity as a result of failure to properly engage people in the production process. This study was therefore necessary to fill the gap by examine the entrepreneurial development and urgent social intervention for all government strategies/ programmes to have employment generation as an output towards economic security. The question remains: given that the economy of Nigeria is producing below its potential, can entrepreneurship education and urgent social intervention guarantee high unemployment reduction?

As the need and call for entrepreneurship increases day by day, the development of entrepreneurship has been stalled in the last few years. This is because of the problems affecting and limiting its development.

Many Nigerian entrepreneurs face a lot of challenges. Here are the major ones that have been affecting the development of entrepreneurship in Nigeria.

1. Lack Of Capital: There are thousands of Nigerians with wonderful ideas that could be turned into a real business. However, most of them lack the capital to push their ideas into reality. The lack of capital is the number one reason why the development of entrepreneurship has not improved over the years.
2. Difficulty In Securing Loans from Financial Institutions: In the first point, we established that the first problem most Nigerians face is the lack of capital. Most people then try to turn to banks and other financial institution to secure loan to fund their idea of business. But getting a loan is very difficult and most times impossible for average Nigerians who are looking for funds to start up a business or who already have a small business. The reason for this is that the banks and financial institutions feel it is a huge risk lending money to them. Financial institutions are not sure if entrepreneur will be able to pay back the loan.

Another major reason why securing a loan is very difficult is the requirement needed for securing the loans. Most of the financial institutions demand huge collateral and high-interest rate that small business owners or start-ups cannot afford. This discourages most Nigerians entrepreneurs and kills many promising ideas.

3. Poor State of Infrastructure in Nigeria: The lack of good infrastructural facilities is another major problem affecting the development of entrepreneurship in Nigeria. The number one issue of infrastructure affecting entrepreneurship is the unstable power supply that has forced a lot of businesses to close down. Most entrepreneurs have to rely on guarantors to run their businesses. They have to spend a lot of money on fuel to run their generators. Also, lack of good roads and transport system is another infrastructure in Nigeria makes the cost of running a business or company high. Most small businesses and start-ups cannot afford it.
4. Unstable State of Nigeria Economy: The state of the Nigerian economy is also a major challenge for entrepreneurs in Nigeria. The state of a country and its economy plays a significant impact on the level of entrepreneurship in any country. The socio-economic problems and the unstable economy of Nigeria has killed a lot of businesses in the last couple years. All these mixed with political instability is not helping businesses at all.
5. Inconsistent Government Policies: There is no continuity in Nigeria government especially when there is a change in governance. Unfortunately, there are no good policies that could create necessary conditions for the development of entrepreneurship in the country. The government needs to create policies and an environment that will give more freedom and possibilities for entrepreneurs.
6. Poor Knowledge on How to Run a Business: Not all the problems are from the government or capital related. Another problem is that most people don’t know how to manage and grow a business properly. They don’t seem to learn or have the resources to learn how to manage and grow a business.
7. Inadequate Planning and Poor Executive: This are the result of the poor knowledge or how to run a business. Most people don’t plan properly before they start their business. They don’t make research about their business, the market for the business, the cost of production, etc. many do not even make a business plan. So, after they start a business, they get stuck and the business fails. Also, a lot of people start off the wrong path and eventually the business ends up failing.
8. Lack Of Patience and Greediness: A lot of new business owners and young entrepreneurs are looking to make money quickly. They are more money oriented and not entrepreneurship oriented. In fact, a lot of people go into business because of the money and they want it fast. Many people want quick money but as a result, they don’t have enough patience to grow a business that has the potential of becoming big. Also, due to the desire for quick returns and greediness, a lot of people try to find easier means of making more money in business and ends up getting due to;
9. High Risk Involved in Starting a New Business: Many are afraid of the risks and give up the idea to start a new business. However, it is important to understand that business and risk go hand in hand. No pain, no gain.
10. Lack Of Entrepreneurial Mindset: This is the result of the mentality that was brought instilled in us in the last decades. This is how the colonial era influenced the mindset of many Nigerians. As we have already mentioned, most people were taught to be in the labour force and jot to be entrepreneurs.

1.3 Research Objective

The objectives of this study are:

1. To examine the possibility of eradicating unemployment in Imo state through entrepreneurial development.
2. To also examine the level at which different entrepreneurial development programmes has been able to lessen the unemployment problem in Imo state.
3. To determine the extent to which basic training can motivate the youths to establish and grow business enterprises in their communities.

1.4 Research Questions

1. Is there any possible way of eradicating unemployment in Imo state?
2. To what level can different entrepreneurial development programmes reduce unemployment rate in Imo state?
3. To what degree can youth be given basic training on how best to grow and establish business enterprises in local communities?

1.5 Research Hypothesis

For the purpose of this study, the following hypothesis were formula to guide this study;

HO1. There is no possibility of curbing youth unemployment problem in Imo state through entrepreneurial development.

HO2. There is possibility of curbing youth unemployment problem in Imo state through entrepreneurial development.

HO3. Different entrepreneurial development programmes cannot be able to reduce unemployment problem in Imo state.

HO4. Different entrepreneurial development programmes can be able to reduce unemployment problem in Imo state.

HO5. Entrepreneurship basic training cannot motivate the youths to establish and grow their business enterprises.

HO6. Entrepreneurship basic training can motivate the youths to establish and grow their business enterprises.

1.6 Significance of the Study

Studying the impact of entrepreneurial skills on reducing youth unemployment in a depressed economy is crucial for several reasons:

1. Addressing high youth unemployment: Youth unemployment is a persistent challenge in many economies, particularly during periods of economic depression. By studying the impact of entrepreneurial skills, we can understand how equipping young people with the necessary knowledge and abilities to start and run their own businesses can contribute to reducing unemployment rates among this demographic.
2. Fostering economic resilience: Depressed economies often struggle with limited job opportunities, low investment, and reduced economic activity. Introducing entrepreneurial skills among the youth can help create a culture of innovation and self-reliance, leading to the establishment of new businesses and the generation of employment opportunities. This, in turn, contributes to economic resilience and can help lift the economy out of depression.
3. Promoting self-employment: Entrepreneurship offers an alternative path to traditional employment, empowering individuals to create their own jobs rather than relying solely on existing opportunities. By studying entrepreneurial skills, we can identify the factors that enable young people to start and sustain their own ventures. This knowledge can inform policies and initiatives aimed at promoting self-employment as a viable option for youth in a depressed economy.
4. Stimulating economic growth: Entrepreneurship plays a crucial role in driving economic growth and development. By studying the impact of entrepreneurial skills on reducing youth unemployment, we can gain insights into how entrepreneurial activity can spur economic revitalization in a depressed economy. Successful entrepreneurial ventures can lead to job creation, increased productivity, and the development of new industries, ultimately contributing to overall economic growth.
5. Enhancing youth empowerment and well-being: Unemployment among young people can have negative consequences on their well-being, self-esteem, and future prospects. By equipping them with entrepreneurial skills, we provide them with tools for self-empowerment and economic independence. Through entrepreneurship, young individuals can pursue their passions, exercise creativity, and contribute meaningfully to society, which can positively impact their overall well-being.
6. Informing policy and educational interventions: Studying the impact of entrepreneurial skills on reducing youth unemployment can inform the development of effective policies and educational interventions. Governments, educational institutions, and other stakeholders can use research findings to design targeted programs that equip young people with the necessary skills, knowledge, and support to embark on entrepreneurial endeavors. Such initiatives can provide practical training, mentorship, access to financing, and networking opportunities, enhancing the chances of success for young entrepreneurs.

In conclusion, studying the impact of entrepreneurial skills on reducing youth unemployment in a depressed economy is significant because it addresses a pressing societal issue, fosters economic resilience, promotes self-employment, stimulates economic growth, enhances youth empowerment and well-being, and informs policy and educational interventions. By understanding the relationship between entrepreneurship and youth unemployment, we can develop effective strategies to alleviate unemployment rates and drive economic recovery.

Pages:  63

Category: Project

Format:  Word & PDF               

Chapters: 1-5                                          

Source: Imsuinfo

Material contains Table of Content, Abstract and References.